Pictured above: Simon Griffiths (Chief Executive of
MAS-WM)
The time is now for manufacturers to see China as an opportunity
instead of just a threat according to one of the sector's leading
figures.
Simon Griffiths, Chief Executive of the Manufacturing Advisory
Service - West Midlands (MAS-WM), believes the recent high profile
visit by David Cameron to open up new trade links with the emerging
superpower underlines growing momentum and confidence from UK
companies to do business in the Far East.
He points to demand for Western technology, a new found appetite
for low carbon and a major surge in the desire for global brands
and cutting edge consumer products amongst the affluent middle
classes as key drivers in the shift of power.
Entry into the Chinese market should not be taken lightly and
that is why the former GKN and Land Rover engineer is keen for
firms to come forward and make the most of the business and
international trade support available.
"In recent years, China has been viewed as the big bad player,
eating up high volume work and materials at an unbelievable rate,"
explained Simon.
"This has had a major effect on UK manufacturing and resulted in
our industry moving towards the higher value added part of the
global chain; this could now be the right time to make the most of
this shift in approach.
"Chinese firms are desperate to incorporate the latest
technologies and innovations and this lends itself perfectly to the
UK's knowledge base, one of our greatest strengths."
He continued: "But not only are there opportunities to export to
China, there is also a move to bring work back to the UK. We are
beginning to see orders return to our shores, from international
companies worried about the technical expertise of manufacturing
businesses in the Far East.
"These factors aren't simply marketing rhetoric. There are
hundreds of examples in the West Midlands alone of companies
exporting considerable amounts of their turnover. Birmingham-based
Brandauer's expertise in complex pressings has seen them achieve
nearly £3.5m of annual sales in this market."
MAS-WM is working closely with Wolverhampton North East MP Emma
Reynolds, who recently returned from a trade mission with the
China-Britain Business Council (CBBC).
Together they have formulated a 'China in your hand' event in
Birmingham on January 28th to give existing and fledging
manufacturing exporters the chance to talk to experts about doing
business in the country.
As well as highlighting new opportunities, growing markets and
the potential for low cost sourcing and joint ventures, the
interactive seminar will also tackle some of the key concerns and
barriers associated with Chinese trade.
"Doing business with China is not for the faint hearted, but it
is nowhere near as difficult as it was a decade ago," explained
Simon.
"Language and business etiquette continues to be a key concern,
as does fluctuating currency exchanges and the fear of intellectual
property being copied - these are all areas we will address during
the two-hour event.
"This is meant to be an initial taster for companies and then
from there they can tap into more tailored support through the
Manufacturing Advisory Service and the vast experience and
resources of UK Trade & Investment and the China-Britain
Business Council."
Rachel Eade, MAS-Auto Cluster Manager, has been responsible for
putting the workshop together and added her support:
"The biggest change is a willingness to work together with the
UK, as the Chinese are keen to embrace Western technology to enable
growth while also working towards Kyoto carbon reduction
targets.
"Car manufacturers are also investing heavily there and this
represents a good opportunity for auto suppliers to get in early
with value added parts, design work and prototyping.
"Speed of communication is so much faster now, with CAD files
being transferred within seconds. The cost of transportation (i.e.
containers) continues to be relatively cheap too."
The 'China in your hand' seminar will be held at 10am on January
28th at the Oriental Chinese Restaurant in Birmingham. To book your
place, please contact philcaren@canyonassociates.co.uk